ROLE OF NATIONAL CULTURE AND TRADITIONS IN BUSINESS COMMUNICATION

Mikhelson S.V.

Krasnoyarsk state agrarian university, Russia

In today’s global business environment, more and more of us are required to understand people who come from countries and cultures different from our own.  This would make culture an important aspect when it comes to business communication. International business and communication has been largely concerned with identifying cultural differences affecting communication.

Both foreign investment and international trade are growing substantially, causing increasing interdependence of national economies as well as furthering the globalization of companies. Cross-border negotiations face the challenge of completely different negotiating processes and styles, based on local history and culture. People engaged in the negotiation process in international business come from a variety of backgrounds and have different culturally influenced negotiation styles. Despite the enthusiasm for increased economic exchange, many people have found that cultural differences have hindered their ability to efficiently conduct business due to their lack of understanding of the cultural differences.

Consequently, learning about the culture and traditions is a key to success in international business negotiations. Both empirical studies and the theoretical literature support the notion that companies which desire to invest and expand into other countries should also be willing to invest the time in preparing for negotiations. All business transactions require certain communicative skills and knowledge.

The focus of this study is on cultural differences and their effects on business and business communication. To conduct successful business communication in a cross-cultural context, it is important that each side has an understanding of what the other side wants out of that communication.

Different cultures use different communication styles, and a party’s style in negotiating directly impacts the terms of the final agreement. It is important to understand the various communication styles and the cultural issues that influence behavior during negotiation.

Culture is difficult to describe as it is a rather vast and inclusive concept. It is something that goes mostly in discussed by the members who share it. Those members go about their daily lives without being overtly conscious of their culture’s influence on them. As E.T. Hall wrote: “Culture is those deep, common unstated experiences which members of a given culture share, which they communicate without knowing, and which form the backdrop against which all other events are judged” [16].

First of all we should identify what culture means. Definitions of culture are numerous and often are vague. Some people think that “Culture is a set of shared and enduring meanings, values, and beliefs that characterize national, ethnic, and other groups and orient their behavior” [6]. E. Adamson Hoebel, a noted anthropologist, defined culture as “the integrated system of learned behavior patterns which are characteristic of the members of a society and which are not the result of biological inheritance” [17].

Culture also refers to individual cultures revealed through the food, songs, and stories that are exchanged with people outside of that region. Simintiras and Thomas defined culture as “accepted values and norms that influence the way in which people think, feel, and behave.” Barbash and Taylor [3] indicated that culture includes religion, gender, language, class, ethnicity, and sexual orientation. Since sub-cultures, cultures and super-cultures merge and evolve, while being less bounded than before; the idea of culture is more porous and varied than before. Lee and Trim [23] indicated that a shared organizational culture can help with the management of an international partnership arrangement, and senior managers will need to possess knowledge of the national cultural value traits of the people concerned.

The notion of culture has witnessed changes from time to time. More than one hundred years ago, E.B. Taylor defined culture in his book Primitive Culture as the complex whole which included knowledge, belief, art, morals, and customs acquired by man as a member of society [11]. In the middle of this century, A.L. Kroeber described culture in his Anthropology as consisting of speech, knowledge, and beliefs that is learned from other man and elders [22]. In Culture: A Critical Review of Concepts and Definitions, A.L Kroeber and Clyde Kluckhohm stated that culture consists of patterns, both explicit and implicit of behavior acquired and transmitted by symbols, consisting the distinctive achievements of human groups, including their embodiment in artifacts [22].

Culture is simultaneously invisible, yet pervasive and has a profound effect on humans and their communication. People from different cultures communicate differently. They use verbal and nonverbal symbols, which are influenced by their culture [25].

In discussing the notion of culture, we also need to pay attention to a nation’s tradition. According to Xian, tradition is what a society inherits from its history and which forms the norms of morality, concept of values, modes of behavior, methods of thinking and ideas [38].

Traditions, which are very closely linked to culture, should be renewed and improved constantly. Mao Zedong once said “Our national history goes back several thousand years and has its own characteristics” [39].

We can also define culture as the socially transmitted behavior patterns, norms, beliefs and values of a given community. Persons from that community use the elements of their culture to interpret their surroundings and guide their interactions with other people.

“A culture is the configuration of learned behavior and results of behavior whose component elements are shared and transmitted that society can impose on an individual.” “Culture is a set of beliefs and standards, shared by a group of people, which helps the individuals to decide what is, what can be, how to feel, what to do and how to go about doing it.” Culture has been called "the way of life for an entire society.” According to this definition culture includes codes of manners, dress, language, religion, rituals, and norms of behavior such as law and morality, and systems of belief. Culture or civilization, taken in its wide ethnographic sense, is that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society.”

Culture can therefore be seen as a language, a “silent language” which the parties need in addition to the language they are speaking if they are truly to communicate and arrive at a genuine understanding [15]. Culture serves as a kind of “glue” – a social adhesive – that binds a group of people together and gives them a distinct identity as a community. It may also give them a sense that they are a community different and separate from other communities.

Culture has been described as an elusive concept, that is “a fuzzy, difficult-to-define construct” [34], capturing the essence of the problems many have had in trying to definitively explain culture. Hofstede and Bond [19] gave us a reasonable way to view culture as “the collective programming of the mind that distinguishes the members of one category of people from those of another.” This programming tends to be securely established in an individual by adolescence, but does evolve from generation to generation [1]. Thus, culture may be viewed as “those beliefs and values that are widely shared in a specific society at a particular point in time” [29]. There are factors that that have been identified as important in defining a culture. They are religion, history and education.

Language is vehicle of culture and is often one of the most visible and audible ways of the expression, without ignoring that several cultures may use the same language or that one language may serve more than one culture. In business negotiation one increasingly problematic area is that sometimes the same words in the languages may have different cultural interpretations. Sometimes, when the various parties speak different languages, it is more effective to use the language that both parties can accept.

Cross-cultural negotiations are more complex due to cultural factors, environments, languages, ideologies, and customs [24]. Because many negotiators may lack understanding of these cross cultural differences, they are often unsuccessful at reaching an agreement. Cultural aspects can be more of an obstacle than economic or legal factors [12]. Every culture develops a unique negotiation style to handle conflicts that arise between those within and outside of that culture. When conducting international business [10]. Gulbro and Herbig [13] indicated that for achieving successful agreements, negotiations are important in order to eliminate conflicting points of view between the representatives. A successful cross-cultural negotiation requires the skill of selecting the appropriate communication strategy and tactics. Successful negotiation requires not only acquiring technical communicative abilities, but also an understanding of the context of the negotiation by both parties [21].

Numerous studies have shown that culture is one of most important factors in cross-country negotiations [31]. An understanding of the differences and similarities of each culture by the negotiators is beneficial in facilitating communication and success in negotiation [9]. When attempting cross-culture negotiations, the representatives need to be aware of and familiar with the different behaviors of representatives from other countries [14].

This research is a causal comparative and explanatory study, and intended to examine, describe, and explore the differences and similarities of various negotiation styles in relation to the cultural differences in China, Russia the USA and European countries. The primary purpose of the study is to provide a more comprehensive understanding of the differences and similarities between culture and negotiation style among negotiators from China, the USA and European countries. The existing literature on the impact of culture on negotiation styles does not address the impact of religious belief on negotiation styles. Since the negotiation styles and cultures of these countries have not been compared and comprehensively examined, this research provides a greater understanding by comparing the culture and negotiation styles of these countries.

Negotiation is a kind of communication to achieve consensus between contractual partners, and the business people have to understand the culture of counterparty’s language, habits, traditions, moral and religious customs [2].

Even for people with experience in negotiation, the different culture may become in wrong practices during cross-culture negotiations, and strategy is essential for processing negotiation challenges [33].

In preparing to the international meeting there must be increased attention to differences in the languages, laws, and customs of both parties. Culture affects all areas of business communications, including contract negotiations, production operations, and product sourcing, marketing campaigns and human resources decisions. As the result different cultures may view the very purpose of a business negotiation differently. For many American executives, the goal of a negotiation, first and foremost, is to arrive at a signed contract between the parties. Americans consider a signed contract as a definitive set of rights and duties that strictly binds the two sides and determines their interaction thereafter [30].

Shekar and Ronen summarize their review of the literature on the cultural context of Chinese negotiations, stating that: Confucian philosophy continues to provide the foundation of Chinese cultural traditions and values, with the tenets of harmony, hierarchy, developing one’s moral potential, and kinship affiliation having relevance for interpersonal behavior. To illustrate the impact of culture on negotiation processes, Shekar and Ronen cite: “...emotional restraint as basic to communication, an emphasis on social obligations, and the interrelationship of the life domains of work, family, and friendship.” Similarly, Kirkbridge, Tang, and Westwood cite the following Chinese cultural values as significantly influencing Chinese negotiation and conflict handling behavior: conformity, collectivism, power distance, harmony, face, shame, reciprocity, Guanxi (i.e., the importance of connections), and time.

Brunner and Wang describe in detail the importance of reciprocity in negotiations between Chinese: “In the Chinese society, one’s face is not solely the responsibility of the individual, but is influenced also by the actions of those with whom he is closely associated, and how he is perceived and dealt with by others. The emphasis is upon the reciprocity of obligations, dependence and the protection of the esteem of those involved. The key to an understanding of face dynamics, therefore, is reciprocity and the Chinese emphasize that one should not only protect one’s face, but extend face to others. Both are of equal importance”.

The traditional Chinese cultural emphasis on relationship makes the importance of attractiveness self-evident. Similarly, both the traditional Confucian roots of the Chinese and their contemporary emphasis on long-term relationships, including for commercial relationships, render highly probable the positive influence of a problem-solving approach on negotiators’ profits, on partners’ satisfaction, and on partners’ reciprocated problemsolving approach. The Chinese people value silence, which is considered to be important in daily activities; silence is reserved for reflection and careful thinking. The Chinese people are strong believers of the English proverb: Speech is silver but silence is golden.

We should focus upon the Eastern and Western cultures. A primary influence, if not the primary influence, within the Eastern culture is Confucianism [5], [27]. Confucius lived approximately 2,500 years ago, and his teaching of the importance of society, the group, and hierarchical relationships within a society has endured through the ages. Likewise, Buddhism and Taoism, the primary religions of the Eastern cultures, place similar emphasis on the importance of the group in society [4], [35]. In contrast, the Judeo-Christian religion has been the primary influence in the West. The Protestant Work Ethic epitomizes the Judeo-Christian emphasis on personal achievement and individual self-worth [8], [35]. Ethical roots in the USA date back to the country's Puritan origins. They tend to be based on a foundation of traditional Judeo-Christian and Western sociotheological laws and principles. Underlying this system is the belief in an intrinsic underlying truth. This belief is central to the biblical system of ethics and morality. Here, moral and ethical bases are provided through the decrees of a sovereign moral authority, God. As a sovereign, God declares right and wrong, providing a general moral and legal framework for organizing a society [5].

The importance of human relationship is primarily derived from the fact that China has been an agricultural state, where a small and closed community is a normal form of social structure. As a result, the Chinese mentality is to work in groups to accomplish a common goal. As a result, individualism is not singled out to be important in the process. In the Chinese culture, privacy is not so highly valued as in the American culture, whose value judgment is entirely based on individualism. This can be explained in two ways. First, the US Constitution guarantees the rights of an individual, which is the building block of US law. Second, the USA has a relatively short history; and thus old styles and ways of thinking that constrain the spirit of individualism in China do not burden daily life in the USA [5].

In Russia, the economic ideology is more collectivistic-oriented while the national culture is more individualistic-oriented. Thus, Russia contrasts with China from a sociocultural standpoint, and with the United States from an economic ideological perspective. Conversely, Japan has an economic ideology that is more individualistic-oriented and a national culture that is more collectivistic-oriented [37].

Since initiating market reforms in 1978, China has shifted from a centrally planned to a market based economy and experienced rapid economic and social development. GDP growth averaging about 10 percent a year has lifted more than 500 million people out of poverty. All Millennium Development Goals have been reached or are within reach.

With a population of 1.3 billion, China recently became the second largest economy and is increasingly playing an important and influential role in the global economy. Yet China remains a developing country (its per capita income is still a fraction of that in advanced countries) and its market reforms are incomplete. Official data shows that about 98.99 million people still lived below the national poverty line of RMB 2,300 per year at the end of 2012. With the second largest number of poor in the world after India, poverty reduction remains a fundamental challenge. 

Until recently, conducting business in Mainland China has been a challenging and sometimes futile venture for businesses trying to break into this profitable market. Although a growing number of companies have established businesses in China, it is still difficult to conduct business with Greater China and to negotiate effectively. With Mainland China as one of the fastest growing developing countries in the world, it has become necessary to negotiate skillfully with firmly entrenched in their culture.

China is a country that has distinctive political, institutional, and cultural characteristics, and it is recognized that such factors can give rise to different modes of economic organization [7].

Japanese, Chinese, and other cultural groups in Asia, it is said, often consider that the goal of a negotiation is not a signed contract, but the creation of a relationship between the two sides [28]. Although the written contact describes the relationship, the essence of the deal is the relationship itself [30].

Russia’s culture expects its members to have a sense of belonging to and conforming with their group. At the same time, it leaves some room for individual preferences. Building lasting and trusting relationships is very important and can be crucial for your business success. If Russians engage in business without first establishing personal relationships, proceed with great caution. They may be looking to take unfair advantage of you if they get a chance. Generally, it is best to give your counterparts time to become comfortable with you. This includes letting them see your personal side, as Russians often mistrust people who are “all business.” Relationship building is normally a slow process here, since people dislike being rushed or having to follow the fast-paced western approach.

Patience is of critical importance in this country. In Russia’s business culture, the respect a person enjoys depends primarily on his or her rank and status. Age and education are less important than in most other countries. Admired personal traits include firmness, sincerity, and dependability.

Negotiations in Russia can be conducted by individuals or teams of negotiators. Teams should be well aligned, with roles clearly assigned to each member. Russians may be very good at exploiting disagreements between members of the other team to their advantage.

While meetings may start considerably late, Russians expect foreign visitors to be punctual. Being late by more than 10 to 15 minutes without having a valid and plausible excuse can be an offense. Do not show signs of impatience if you have to wait, even if the other side is an hour or more late. Making a good first impression is at least as important as coming with a compelling proposal. It is characteristic of Russians to be pessimistic, so a lack of enthusiastic responses should not discourage you. Your presentation materials should be attractive, with good and clear visuals. Use diagrams and pictures wherever feasible, cut down on words, and avoid complicated expressions. Russians may expect to discuss many details, so bring enough background information. Having your handout materials translated to Russian is not a must, but it helps in getting your messages across.

Methods of communication vary among cultures. Some people place an emphasis on direct and simple methods of communication; others rely on indirect and complex methods. For example, Germans and Americans are direct, the French and the Japanese are indirect.

Communication is the main problem in cross cultural businesses. Always explain and clarify the meaning of what you are saying to maintain harmony and miscommunication. Communication takes an important role in intercultural collaboration. Because people from different cultures understand the same word multiply. Western people favor more explicit forms of communication, whereas Eastern people prefer an implicit style of communication. Hall used the cultural dimension of high- and low-context as a theoretical framework to explain the different preference of communication style across cultures. He defined context as the amount of information packed into a specific instance of communication. People from a low-context culture (e.g., European Americans and Germans) rely more on the explicit message and pay less attention on the surrounded information, whereas people from a high-context culture (e.g., Chinese and Koreans) pay more attention to the contextual information and rely less on the direct information [16]. When high-context and low-context people attempt to communication, misunderstanding often occurs.

Culture directly affects business communication, both verbal and nonverbal. Some cultures, including the USA, the United Kingdom and many European countries, place high significance to the words actually spoken. Other cultures, including China, Japan and Arab cultures, still place significance on the spoken word, but also place great significance on the context of the conversation. Silence carries significance in all cultures, and this might be interpreted in different ways during cross-cultural business meetings. An awareness of cultural attitudes toward business will help you communicate efficiently and effectively when working with people from other cultures. For example, Asian cultures, including Japan and China, promote teamwork and cooperation in business environments while Western businesses promote individual action and responsibility.

A large part of international business success depends how well businesses appreciate cultural differences, adapt their business to accommodate these differences and learn to carry out their business objectives within this environment. Ignoring culture in business communication can lead to problems and communication disruptions. This is why it’s important to be aware of possible differences you can encounter and how these can impact your international business.

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